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The video tutorial demonstrates how to convert a column of records into a proper data set using Power Query. The tutorial compares the process with an Excel worksheet formula shown in a previous video. There are two methods shown in the video: using the user interface and using M code. The importance of using Power Query over a formula is highlighted when dealing with external data that needs to be imported. The process involves importing data from a text file and transforming it using Power Query. Links to the necessary files are provided in the video description.